Delays to the approval of a controversial wind farm expansion have ‘cost the council £1million’ in lost revenue, council chiefs have admitted.

Rossendale council has revealed that hold ups and the government’s call-in of the proposed expansion of the Scout Moor wind farm from 26 to 42 turbines have blown a seven-figure hole in its budget. A decision is now not expected until April at the earliest.

The council’s medium term financial strategy assumes that the authority will eventually receive £600,000 a year in business rates from Scout Moor, accounting for the vast majority of its income from renewable energy sources.

At a meeting of the council’s cabinet, Tory group leader Anne Cheetham questioned how the shortfall could be met if the plan was ultimately rejected.

She said: “You don’t know how excited I am about the possibility of Scout Moor - I say that with tongue in cheek, but this could be the saviour of the council. Just supposing - and I heard what you said that we might not get the decision that perhaps a lot of people would want to receive - how are we going to fill that gap?

“I personally feel I am not excited about that particular plan but I am realistic to say there might have to be a very big gap filled there.”

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Council leader Alyson Barnes replied that it was “a very real risk”, that the council could be left with a hole in its budget if the scheme was refused, adding : “You do wonder - the government sets us the challenge of actually addressing and sorting out our own financial affairs, you attempt to do that and you are thwarted from doing so.

“February was the expected date [for a final decision on the plans] but, due to sickness, that has been delayed.

"You are absolutely right to say this is a significant project for the borough - it’s worth around £20million around the life of the scheme, which is not a small gap to fill in the medium term financial strategy if it doesn’t come off. We are all watching that with interest.”

A Rossendale council spokesperson said: “With regard to the significance of this decision the value to council is estimated to be £20million over the life of the scheme with an annual value of £600,000 per annum over the early years of production, which is equivalent to a 12 per cent increase in council tax resources.